Merisant seeks court approval of Newport standby, subscription deals

By Caroline Salls

Pittsburgh, Sept. 30 - Merisant Worldwide, Inc. requested court approval to enter into a standby commitment and subscription agreement with plan investor Newport Global Opportunities Fund, LP, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Merisant's plan of reorganization includes a $5 million rights offering, which will be backstopped by the investor for $2.5 million, and a $7.5 million new equity investment.

The company said Newport's participation guarantees that there will be at least $10 million in cash available to distribute to holders of bank claims.

A hearing is scheduled for Oct. 19.

Merisant, a Chicago-based marketer of low-calorie tabletop sweeteners, filed for bankruptcy on Jan. 9, 2009. Its Chapter 11 case number is 09-10059.

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